Agricultural propertyU.K.
1(1)This paragraph applies where—
(a)there is a disposal of an asset which is, or is an interest in, agricultural property within the meaning of [F1Chapter II of Part V of the Capital Transfer Tax Act 1984] (capital transfer tax relief for agricultural property), and
(b)apart from this paragraph, the disposal would not fall within [F2section 126(1)] of this Act by reason only that the agricultural property is not used for the purposes of a trade carried on as mentioned in [F2section 126(1A)(a)].
(2)Where this paragraph applies, section 126(1) of this Act shall apply in relation to the disposal if the circumstances are such that a reduction [F3at the rate of 50 per cent.] in respect of the asset—
(a)is made under [F1Chapter II of Part V of the Capital Transfer Tax Act 1984] in relation to a chargeable transfer taking place on the occasion of the disposal, or
(b)would be so made if there were a chargeable transfer on that . . . F4[F5, or]
[F6(c)would be so made but for section 124A of that Act (assuming, where there is no chargeable transfer on that occasion, that there were)].
Textual Amendments
F1Words substituted by Inheritance Tax Act 1984 (c. 51), s. 276 and Sch. 8 para. 12
F2Words substituted by Finance Act 1989 (c. 26, SIF 63:2), s. 124 and Sch. 14 para. 3(2) in relation to disposals on or after 14 March 1989 (except where relief given under Finance Act 1980 (c. 48, SIF 63:1), s. 79 in respect of a disposal before that date)
F3Words substituted by Inheritance Tax Act 1984 (c. 51), s. 276 and Sch. 8 para. 12 and repealed by Finance Act 1989 (c. 26, SIF 63:2), ss. 124, 187, Schs. 14 and 17 Part VII in relation to disposals on or after 14 March 1989 (except where relief given under Finance Act 1980 (c. 48, SIF 63:1), s. 79 in respect of a disposal before that date)
F4Words repealed by Finance Act 1981 (c. 35, SIF 63:2), s. 139 and Sch. 19 Pt. VIII
F5 “, or” inserted by Finance Act 1989 (c. 26, SIF 63:2), s. 124 and Sch. 14 para. 3(2) in relation to disposals on or after 14 March 1989 (except where relief given under Finance Act 1980 (c. 48, SIF 63:1), s. 79 in respect of a disposal before that date)
F6Sch. 4 para. 1(2)(c) inserted by Finance Act 1989 (c. 26, SIF 63:2), s. 124 and Sch. 14 para. 3(2) in relation to disposals on or after 14 March 1989 (except where relief given under Finance Act 1980 (c. 48, SIF 63:1), s. 79 in respect of a disposal before that date)
Modifications etc. (not altering text)
C1See Finance Act 1986 (c. 41), s. 100 for occasions when Capital Transfer Tax Act 1984 (c. 51, SIF 65) referred to as Inheritance Tax Act 1984 (c. 51)